When the S 34 petition is filed without the arbitral award, it is non-est: Delhi High Court
Case Title: UNION OF INDIA…. V. M/S PANACEA BIOTEC LIMITED
Case No: FAO (OS) (COMM) 83/2020, CM APPL. 15008/2020, CM APPL. 15009/2020, CM APPL. 32612/2020
Decided on: 19 December, 2023
CORAM: JUSTICE SURESH KUMAR KAIT, JUSTICE NEENA BANSAL KRISHNA
Facts of the Case
The petitioner initially filed a Section 34 petition challenging an arbitral award on 31.05.2019, which contained several defects. These defects included the absence of court fees, an undated vakalatnama, an incomplete statement of truth, and a failure to attach the copy of the award sought to be challenged. The petitioner made modifications and re-filed on 11.07.2019, maintaining the original filing date. The court found this practice objectionable, viewing it as an attempt to manipulate the limitation period. The court dismissed the petition, citing non-compliance with procedural requisites and observed that the initial filing should be considered “non est” due to the award not being placed on record by 31.07.2019.
Legal Provisions
Section 34(3) of the Arbitration & Conciliation Act, 1996 sets a strict limitation period of three months for filing objections against an arbitral award, with a 30-day extension if sufficient cause is demonstrated. The court has the authority to condone the delay. Section 41 of the Arbitration Act, 1940 outlines the form and content requirements for an appeal under Section 39, aligning with the provisions of the Code of Civil Procedure (CPC). However, the 1996 Act excludes the applicability of the CPC, emphasizing adherence to general legal principles.
Issues
Whether the defects in the initial Section 34 petition render it non-existent or merely require rectification. The significance of filing the arbitral award along with the Section 34 petition. The court’s authority to condone delays in re-filing and the distinction between fatal and ancillary defects. The validity of objections filed without the impugned award, and the requirement for a prayer paragraph in the petition. The appropriateness of granting extensions beyond the prescribed period without sufficient cause.
Courts Analysis and Decision
The court, in its determination of the appeal, ruled that the petitioner’s failure to substantiate the delay in filing the petition resulted in its dismissal. Emphasizing the stringent temporal constraints stipulated by Section 34 for the prompt enforcement of arbitral awards, the court deemed the initial filing as “non-est” due to inherent deficiencies. The subsequent valid filing, according to the court, transpired beyond the proscribed period. Rejecting the contention that the first filing should be sustained, the court articulated that sanctioning such practices would undermine the intended purpose of the limitation period. In elucidating its decision, the court underscored its commitment to procedural integrity and the enforcement of statutory timelines within the realm of arbitration proceedings. The dismissal of the appeal serves as a tangible manifestation of the court’s dedication to upholding these principles, signaling a steadfast stance against compromising procedural rigor in the adjudication of such matters.
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Written by- Komal Goswami